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THE INFLUENCE OF PERCEIVED VALUE,
PERSONAL VALUES, AND SALESPEOPLE
TOWARDS REPURCHASE INTENTION:
A STUDY ON LUXURY NATURAL PRODUCT
WILAWAN JANSRI
UNIVERSITI SAINS MALAYSIA
2015
THE INFLUENCE OF PERCEIVED VALUE,
PERSONAL VALUES, AND SALESPEOPLE
TOWARDS REPURCHASE INTENTION:
A STUDY ON LUXURY NATURAL PRODUCT
By
WILAWAN JANSRI
Thesis submitted in fulfillment of the requirements
for the degree of Doctor of Philosophy
January 2015
ii
ACKNOWLEDGEMENTS
First of all, my thanks go to my lovely family for supporting me, and giving me
the strength, love, and encouragement to make a difference in this world. I especially
want to thank my beloved mother, who has always stood beside me and has helped
me stay motived to complete the research. Moreover, my beloved sister, Suwipa, has
also supported and encouraged me during my study. Another important person to
mention is my beloved dad, who instilled a love of learning and guided me to
academic life.
Fulfilling the requirements of this thesis would have never been completed
without the encouragement and support of a number of key people at Universiti of
Sains Malaysia.
I am greatly indebted to my supervisor, Dr. Malliga Marimuthu, for her
kindness and wisdom, as well as her keenness to guide and counsel me, and review
my work throughout this research. I also would like to express my sincere thanks to
my co-supervisor Dr. Siti Hasnah Hassan for her knowledge, support, assistance and
her invaluable advice throughout my study. Her constructive feedback has helped me
remedy the shortcomings of my study.
My appreciation and gratitude also goes to Professor T. Ramayah and Assistant
Professor Dr. Nadine Hennigs for their knowledge and guidance throughout my
study. My thanks also go to the academic and administrative staff in the School of
Management, whose kind support I have received over these years.
iii
My gratitude is also extended to my friends; Hayder Naser Krabiet, Khanitha
Treekeaw, Noknan Chantivong, Amayavee Lumpo, Parichart Benrit, Dr. Khanungnit
Hnuchek, Dr.Tippawan, Yaowalak Trakulmaykee, Repeepan Paochoo, Dr.Numtip
Trakulmaykee, Dr.Siripat Apirak Tohtayong, Pimjai Promsuwan, Lilla Adulyasas,
Laila Bunpis, Moragot Saweangboon, Thunyathon, Sirilak Phathanrat, and all my
friends in Bangkok city.
I would also like to deeply thank my academic colleagues at the School of
Management at Universiti Sains Malaysia, including Dr. Sheeva Jahani, Dr. Chutima
Wangbenmad, Dr.Siddig Balal Ibrahim Balal, Dr.Ruslaina, Mohammad Iranmanesh,
Noval, Roshni, Abdullah, Nurul, and Dr.Sabai Khin.
Again, thanks to all of you for encouraging me to complete this thesis.
iv
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS ii
TABLE OF CONTENTS iv
LIST OF TABLES viii
LIST OF FIGURES x
LIST OF ABBREVIATIONS xi
ABSTRAK xii
ABSTRACT xiii
CHAPTER 1 INTRODUCTION
1.1 Overview of Chapter 1 1.2 Background of the Study 1
1.3 Thailand Cosmetics Industry 4 1.4 The Dynamics of Luxury Natural in Cosmetics Industry 10
1.5 Research Problems 15 1.6 Research Questions 22
1.7 Research Objectives 22
1.8 Definition of Key Terms 23
1.9 Significance of Study 26
1.10 Scope of Study 31
1.11 Organization of Remaining Chapters 32
CHAPTER 2 LITERATURE REVIEW
2.1 Overview of Chapter 33
2.2 Definition and Overview of Natural Consumption 33
2.3 Definition and Overview of Luxury Consumption 38
2.4 Conceptualisation and Market Growth of Luxury Natural Products 42
2.5 Theoretical Underpinnings 43
2.5.1 The Theory of Consumption Values 44
2.5.2 Values Theory 48
2.6 Repurchase Intention 51
2.7 Perceived Value in Luxury Natural Consumption 55
2.7.1 Definition of Perceived Value 56
2.7.2 Conceptualisation of Perceived Value 57
2.7.3 Studies of Perceived Value on the Luxury Model 61
2.7.4 Issues with the Luxury Model of Wiedmann (2007) 63
2.7.5 Dimensions of Perceived Value 67
2.7.5.1 Financial Value 68
2.7.5.2 Functional Value 69
2.7.5.3 Social Value 72
2.7.6 Perceived Value and Repurchase Intention 73
2.7.6.1 Financial Value and Repurchase Intention 74
2.7.6.2 Functional Value and Repurchase Intention 76
2.7.6.3 Social Value and Repurchase Intention 80
v
2.8 Personal Values in Luxury Natural Consumption 83
2.8.1 Definition of Personal Values 84
2.8.2 Personal Values in Natural Consumption 84
2.8.3 Personal Values in Luxury Consumption 85
2.8.4 Dimensions of Personal Values 86
2.8.4.1 Health Consciousness 87
2.8.4.2 Environmental Consciousness 88
2.8.4.3 Appearance Consciousness 88
2.8.4.4 The Need for Uniqueness 89
2.8.5 Personal Values and Repurchase Intention 90
2.8.5.1 Health Consciousness and Repurchase Intention 91
2.8.5.2 Environmental Consciousness and Repurchase
Intention
92
2.8.5.3 Appearance Consciousness and Repurchase
Intention
92
2.8.5.4 The Need for Uniqueness and Repurchase
Intention
94
2.8.6 The Integration of Perceived Value and Personal Values
in the Conceptual Model
94
2.9 Consumer Orientation of Salespeople (COSP) 96
2.9.1 The Role of Salespeople 96
2.9.2 Definition of COSP in the Current Study 98
2.9.3 Dimension of COSP 99
2.9.4 COSP as the Moderator 101
2.10 Proposed Conceptual Model of the Study 103
2.11 Summary of Hypotheses 106
2.12 Summary 107
CHAPTER 3 RESEARCH METHODOLOGY
3.1 Overview of Chapter 108
3.2 Research Design 108
3.3 Target Product Category and Product Selection 112
3.4 Population and Sampling Frame 114
3.5 Sampling Procedure 116
3.6 Sample Size 116
3.7 Data Collection Procedure 118
3.8 Questionnaire Design 120
3.9 Pretesting 121
3.10 The Pilot Study 123
3.11 Research Instruments 125
3.12 Measurements of Perceived Value, Personal Values, and COSP 127
3.12.1 Measurements of Financial Value 127
3.12.2 Measurements of Functional Value 128
3.12.2.1 Products Safety Value 129
3.12.2.2 Quality Value 130
3.12.2.3 Usability Value 131
3.12.3 Measurements of Social Value 132
3.12.3.1 Conspicuousness Value 132
3.12.3.2 Prestige Value 133
3.12.4 Measurement of Personal Values 133
3.12.4.1 Health Consciousness 134
3.12.4.2 Environmental Consciousness 135
3.12.4.3 Appearance Consciousness 135
3.12.4.4 The Need for Uniqueness 136
vi
3.13 Measurements of Customer Orientation of Salespeople (COSP) 137
3.14 Measurements of Repurchase Intention 138
3.15 Method of Analysis 138
3.16 Summary 144
CHAPTER 4 DATA ANALYSIS AND FINDING
4.1 Overview of Chapter 145
4.2 Method of the Study 145
4.3 Response Rate 146
4.4 Preliminary Data Analysis 147
4.5 Profile of Respondents 148
4.6 Descriptive Analysis 151
4.7 Analysis 152
4.7.1 Common Method Variance (CMV) 152
4.7.2 Partial Least Square Analysis Results 154
4.7.2.1 Higher-Order Model 156
4.7.3 Measurement Model Assessment 157
4.7.4 Assessing PLS-SEM Structural Model Results 167
4.7.4.1 Assessing of Structural Model for Collinearity
Issues
167
4.7.4.2 Structural Model Path Coefficients 168
4.7.5 Results of Hypotheses 181
4.7.6 Coefficient of Determination 182
4.7.7 Effect Size f2 183
4.7.8 Blindfolding and Predictive Relevance Q2 184
4.7 Summary 186
CHAPTER 5 DISCUSSION AND CONCLUSION
5.1 Overview of Chapter 187
5.2 Recapitulation of Finding 187
5.3 Discussion 188
5.3.1 Perceived Value 189
5.3.2 Personal Values 189
5.3.3 Repurchase Intention 190
5.3.4 Perceived Value and Repurchase Intention 190
5.3.4.1 Financial Value and Repurchase Intention 191
5.3.4.2 Functional Value and Repurchase Intention 192
5.3.4.3 Social Value and Repurchase Intention 196
5.3.5
Personal Values and Repurchase Intention
199
5.3.5.1 Health Consciousness and Repurchase Intention 200
5.3.5.2 Environmental Consciousness and Repurchase
Intention
201
5.3.5.3 Appearance Consciousness and Repurchase
Intention
202
5.3.5.4 The Need for Uniqueness and Repurchase Intention 203
5.3.6 Moderating Effect of Customer Orientation of Salespeople
(COSP) on the Relationship between Perceived Value and
Repurchase Intention
206
5.3.6.1 Moderating Effect of COSP on Product Safety
Value and Repurchase Intention
206
vii
5.3.6.2 Moderating Effect of COSP on Quality Value and
Repurchase Intention
208
5.3.6.3 Moderating Effect of COSP on Usability and
Repurchase Intention
209
5.4 Contributions of the Study 212
5.4.1 Theoretical Contributions 212
5.4.2 Practical Contributions 216
5.5 Limitations of the Study 222
5.6 Suggestions for Future Research 223
5.7 Conclusions 226
REFERENCES 229
APPENDICES
Appendix A1 : Questionnaire (English Copy)
264
265
Appendix A2 : Questionnaire (Thai Copy) 271
Appendix B : SPSS Outputs 278
Appendix C : SmartPLS Outputs 293
viii
LIST OF TABLES
Page
Table 1.1
Market Shares of Thai Cosmetics by Subsector
5
Table 1.2 Imported Values (Million THB) of Thai Cosmetics Products:
Classified by Countries 2010-2013 (Jan-Oct)
8
Table 1.3 Exported Values (Million THB) of Thai Cosmetics, Beauty
Products and Soap: Classified by Countries 2010-2013 (Jan-Oct)
9
Table 2.1 The Definition of Organic 35
Table 2.2 The Planning and the Processing of Organic and Natural Product 36
Table 2.3 Definition of Luxury 39
Table 2.4 The Instruments Developed to Measure a Personal‘s Values
System
49
Table 2.5 Definition of Perceived Value 57
Table 2.6 Multidimension Approach to Perceived Value 59
Table 2.7 Empirical Dimension Used to Study Perceived Value on Luxury
Consumption
62
Table 2.8 Summary of Hypotheses 106
Table 3.1 Brand and Definition of Luxury Natural Skin Care Products 114
Table 3.2 Cronbach‘s Alpha Coefficient Values from Pilot Study 125
Table 3.3 Source and Description of All Study Variable Measures 126
Table 3.4 Measurement Items for Perceived Financial Value 128
Table 3.5 Measurement Items for Perceived Product Safety Value 129
Table 3.6 Measurement Items for Perceived Quality Value 131
Table 3.7 Measurement Items for Perceived Usability Value 131
Table 3.8 Measurement Items for Perceived Conspicuousness Value 133
Table 3.9 Measurement Items for Perceived Prestige Value 133
Table 3.10 Measurement Items for Health Consciousness 134
Table 3.11 Measurement Items for Environmental Consciousness 135
Table 3.12 Measurement Items for Appearance Consciousness 136
Table 3.13 Measurement Items for The Need for Uniqueness 136
Table 3.14 Measurement Items for Customer Orientation of Salespeople 137
Table 3.15 Measurement Items for Repurcahse Intention 138
Table 3.16 Comparison of SEM Techniques 140
Table 3.17 Assessment of Reflective Measurement Models 142
Table 3.18 Assessment of Structural Models 143
Table 4.1 Summary of Total Sample Distribution and Responses Received 147
Table 4.2 Profile of Respondents (n=325) 149
Table 4.3 Distribution of Luxury Natural Skin Care Products Used by the
Respondents
150
Table 4.4 Type of Luxury Natural Skin Care Products Used by the
Respondents
151
Table 4.5 Descriptive Analysis (n-325) 152
ix
Table 4.6 Measurement Model Assessment of First Order Construct and
Other Constructs
160
Table 4.7 Cross Loading of the Latent Variable for the First-Order
Constructs
162
Table 4.8 Fornell-Larcker Criterion Analysis for First-Order Constructs 163
Table 4.9 Accessing the Second-Order Constructs 164
Table 4.10 Loading and Cross Loading of the Second-Order Constructs 165
Table 4.11 Discriminate Validity of Second-Order Constructs 166
Table 4.12 Collonearity Assessment 168
Table 4.13 Hypotheses Testing : Main Effects Model of Perceived Value and
Repurchase Intention
172
Table 4.14 Hypotheses Testing : Main Effects Model of Personal Values and
Repurchase Intention
173
Table 4.15 Significance of Path Analysis 174
Table 4.16 Hypotheses Testing : Moderating Effects Model 178
Table 4.17 Results of Hypotheses 182
Table 4.18 Summary of Results 184
Table 4.19 Results of R2 and Q
2 Values 185
x
LIST OF FIGURES
Page
Figure 1.1 Overall Model Guiding Current Study 21
Figure 2.1 The Original Model of the Theory of Consumption Values by
Sheth et al. (1991)
45
Figure 2.2 Perceived Value Dimensions 68
Figure 2.3 Personal Values Dimensions 87
Figure 2.4 Review of Dimensions Describing Initial Luxury Value Model
and Conceptual Model for Current Study
95
Figure 2.5 Consumer Behaviour Intention Towards Luxury Natural Products 105
Figure 2.6 Conceptual Model 106
Figure 3.1 Data Collection Procedure 119
Figure 4.1 Main Effect Model 155
Figure 4.2 Moderating Effect Model 155
Figure 4.3 First-Order and Second-Order Reflective Constructs 157
Figure 4.4 Conceptual Model 158
Figure 4.5 Structural Model Estimation of Direct Effects 170
Figure 4.6 The Two-Stage Approach : Moderator Model in SmartPLS 176
Figure 4.7 Structural Model Estimation of Moderating Effects 177
Figure 4.8 The Significant Moderating Effect Model 178
Figure 4.9 Moderating Effect of COSP on the Relationship between Product
Safety Value and Repurchase Intention
179
Figure 4.10 Moderating Effect of COSP on the Relationship between Quality
Value and Repurchase Intention
180
Figure 4.11 Moderating Effect of COSP on the Relationship between Usability
Value and Repurchase Intention
181
xi
LIST OF ABBREVIATIONS
FV Financial Value
SV Product Safety Value
QV Quality Value
UV Usability Value
CV Conspicuousness value
PV Prestige Value
HC Health Consciousness
EC Environmental Consciousness
AC Appearance Consciousness
NU The Need for Uniqueness
COSP Customer Orientation of Salespeople
SME Small and Medium Enterprises
DEP The Department of Export Promotion
USD United States Dollar (currency of the USA)
THB Thai Baht (currency of Thailand)
SPSS Statistical Package for Social Sciences
SEM Structural Equation Modelling
xii
PENGARUH PERSEPSI NILAI, NILAI-NILAI PERIBADI DAN JURUJUAL
TERHADAP NIAT PEMBELIAN SEMULA: SATU KAJIAN MENGENAI
PRODUK SEMULAJADI MEWAH
ABSTRAK
Pasaran bagi produk mewah kosmetik semulajadi semakin berkembang pesat dan kesedaran
penggunaan semakin meningkat di kalangan pelanggan. Kajian ini bertujuan untuk
menyiasat faktor-faktor kritikal yang mempengaruhi keinginan tingkahlaku pengguna ke
arah pembelian semula produk mewah penjagaan kulit semulajadi di kalangan pengguna
Negara Thai. Selain itu, kajian ini meletakkan pelanggan berorientasikan jurujual
memperkukuhkan hubungan antara dimensi persepsi nilai dan pembelian semula. Integrasi
antara tiga faktor-faktor ini menunjukkan wujudnya pengaruh dalaman (i.e., nila-nilai
peribadi), pengaruh luaran (i.e., persepsi nilai) dan mekanisma (i.e., pelanggan
berorientasikan jurujual) terhadap niat pembelian semula.. Data sampel diperolehi dari 325
pengguna produk penjagaan kulit semulajadi mewah di kawasan metropolitan di Bangkok.
Data dianalisis menggunakan perisian SmartPLS versi 2.0. Keputusan kajian menunjukkan
bahawa nilai tanggapan kewangan, nilai kebolehgunaan tanggapan, kesedaran kesihatan dan
kesedaran penampilan adalah faktor-faktor utama yang mempengaruhi niat pengguna di
Negara Thai ke arah pembelian semula produk penjagaan kulit semulajadi mewah. Dapatan
kajian menunjukkan bahawa faktor utama terdiri daripada pengaruh dalaman (nilai-nilai
peribadi) dan pengaruh luaran (persepsi nilai) memberikan kesan terhadap niat pembelian
semula. Selain daripada itu, dapatan kajian juga menunjukkan bahawa pelanggan
berorientasikan jurujual mengukuhkan hubungan di antara nilai tanggapan (keselamatan
produk, kualiti dan kebolehgunaan) dan niat pembelian semula. Berdasarkan hasil kajian,
perbincangan tentang dapatan seperti kesan terhadap teori, kesan terhadap implikasi dan
batasan kajian turut disediakan.
xiii
THE INFLUENCE OF PERCEIVED VALUE, PERSONAL VALUES, AND
SALESPEOPLE TOWARDS REPURCHASE INTENTION: A STUDY ON
LUXURY NATURAL PRODUCT
ABSTRACT
The market for luxury natural product is emerging and many customers are being concern
about the product. This study is aimed to investigate the critical factors that influence
consumer behavioural intention toward repurchasing the luxury natural skin care products
among Thai consumers. Additionally, the study posits that customer orientation of
salespeople strengthen the relationship between the dimensions perceived value and
repurchase intention. The integration of these three factors reflects internal influence (i.e.,
personal values), external influence (i.e., perceived value), and mechanism (i.e., customer
orientation of salespeople). The sample data was collected from 325 consumers of luxury
natural skin care products at the metropolitan areas in Bangkok and was analysed using
SmartPLS software version 2.0. The results reveal that two dimensions of perceived value;
namely financial value and usability and two dimensions of personal values, including health
consciousness and appearance consciousness are the key factors affecting on Thai
consumers‘ intention toward repurchasing the luxury natural skin care products.
Remarkably, the outcome shed light factors which are comprised of internals (i.e., personal
values) and externals (i.e., the perceived value) to determine their impact on repurchase
intention. Additionally, the finding shows that customer orientation of salespeople
strengthens the relationship between perceived value (i.e., product safety, quality and
usability) and repurchases intention. Base on the finding of the study, discussions of the
existing findings as well as the theoretical, practical implications and limitations, of the study
were provided.
1
CHAPTER 1
INTRODUCTION
1.1 Overview of Chapter
This chapter introduces the research by providing the background to the
research, the dynamics of luxury natural in cosmetic industry, and the description of
the research problem. It introduces the underlying assumptions upon which the
research will be based and justifies the importance of the research and the
contributions it makes to the field of knowledge. The methodology to be used and the
scope and limitations of the research are discussed. Finally, the chapter provides an
outline of the whole research.
1.2 Background of the Study
The trend for health related products derived from natural ingredients is
increasing (Dimitrova, Kaneva, & Gallucci, 2009). Natural ingredients are being
processed into a wide variety of products, such as herbal medicine, food
supplements, additives for farm animals, personal care products and even cosmetics
(Dimitrova et al., 2009; Nagasawa & Kizu, 2013). Cosmetic is one of the products
using natural ingredients, which are continually growing in the market. The main
driver of growth in the natural cosmetics market has been the consumer trend
towards healthier lifestyles (Girotto, 2013). Many consumers believe that natural
products have higher standards of quality (APCOWorldwide, 2013; Tait, 2005),
while they contain less synthetic chemicals, compared with conventional products
(APCOWorldwide, 2013; Girotto, 2013; OrganicWellness, 2012). Additionally,
2
consumers are not only concerned about health issues or quality of the products, but
also about environmental issues of their purchasing behaviour. Hence, environmental
concerns have been playing a key role in the increase of the market share of natural
products (APCOWorldwide, 2013; Girotto, 2013; Nagasawa & Kizu, 2013).
Consequently, many cosmetics companies have entered the global market (Datta &
Parameah, 2010). More specifically, natural cosmetic products have been penetrated
into emerging markets (Łopaciuk & Łoboda, 2013).
The growth of natural cosmetic products in the global market is reflected by
significant changes in consumers‘ income level and in their lifestyle. In general, the
growth in the market is relatively driven by richer consumers and increased
discretionary income in developed countries. In particular, income levels of the
middle classes in developing countries have also increased dramatically; this has
provided of ample opportunities and increasing demand for natural cosmetic
products across emerging markets (Łopaciuk & Łoboda, 2013). Remarkably, the
natural cosmetic products have not only attracted significant demand in medium and
low market, but also in the luxury market (Nagasawa & Kizu, 2013). In fact, the
luxury cosmetics sector has been dramatically growing since the last decade
(Christodoulides, Michaelidou, & Li, 2009), and continues to grow steadily in
emerging market until now. However, the growth of luxury natural cosmetics market
has been showing contrasting trends with what has been mentioned in previous
literature related to luxury consumer behaviour in the last decade. This has motivated
the researcher to study the phenomenon by distinguishing the perspective of
consumer behaviour from the natural cosmetics luxury market as a niche market by
considering the predictor factors.
3
Accordingly, the cosmetics businesses have faced dramatic increase in demand
for natural cosmetic products. This hinders their expansions in the emerging markets
and it has created more challenges on their path (Bird, 2007; KlineGroup, 2014). On
one hand, growing consumer preferences towards the natural cosmetic products is
imposing on the cosmetics businesses to modify and base their strategies on
consumer needs to achieve their long-term business goals. One the other hand, since
the emerging market is still at its early stage (Łopaciuk & Łoboda, 2013), most of the
businesses have yet to explore information about the consumer behaviour towards
natural cosmetic products. Therefore, understanding the consumer behaviour is a
main concern in the natural cosmetics industry to develop appropriate business
strategies in this particular market.
This study aims to explore the determining factors affecting repurchase
intention within context of luxury natural products. Particularly, the independent
variables include perceived value and personal values. In addition to that, this study
also is interested in investigating the moderating role of customer orientation of
salespeople (COSP) on the relationship between perceived value and repurchase
intention.
Apart from trying to gain some theoretical perspectives, the study also attempts
to provide insights to business or marketing practitioners regarding the consumption
of luxury natural products in the cosmetics industry. By providing a clear picture of
the determining factors influencing consumer repurchase intention, this study can
assist businesses improve their marketing strategies to directly encourage consumers‘
repurchase intention of luxury natural cosmetic products.
4
1.3 Thailand Cosmetics Industry
The cosmetics market in Thailand is highly competitive. Most international
manufacturers and suppliers of cosmetic products are represented in Thailand. All of
the businesses have great marketing strategies to retain market shares and to
stimulate demand (American Consulate General, 2011). Thailand is a popular place
for herbs, aromatic products and Thai manufacturers are commonly hired by
foreigners to produce cosmetic products for foreign brands because of the low cost of
labour and abundance of natural resources (Department of Export Promotion
Ministry of commerce, 2010). Furthermore, government policy and government
support are aimed to position Thai cosmetics entrepreneurs in the international
market. The Department of Export Promotion (DEP) Thailand views this as the
solution strategy to developing the SMEs in cosmetic products. Therefore, cosmetic
products have been promoted as one of 12 target products to be developed, while the
health care and beauty products business has been promoted as one of six target
businesses to be developed under the export strategy of Thailand‘s Department of
Export Promotion in 2005 (Prongsan, 2007). Moreover, the government of Thailand
tries to promote Thailand as a Beauty and Wellness Hub of Asia (Department of
Export Promotion Ministry of commerce, 2010).
Cosmetic products in Thailand can be divided into the following categories;
hair care, make-up, skin care, and perfume. American Consulate General (2011)
reported that in 2010 the market share of skin care products in Thailand have the
highest market share of all product categories with 37 percent share and a growth
rate of nine percent (Table 1.1). The total value of Thai natural and organic
cosmetics has reached US$7 billion in the year 2009, with 15 percent to 20 percent
5
annual growth (Amalia, Giovanni, & Kankamon, 2011). The consumption of natural,
green, and organic products among Thai consumers is getting popular and the market
is emerging at a tremendous speed (Market-Research, 2013; Wong, 2012). At the
same time, imported products from overseas to local market is increasing; they are
seeking for a good opportunity, and this trend is expected to continue in the future.
This relatively high market value is due to people are now placing greater emphasis
on beauty and personal appearance, as well as health (Kasikorn Research Center,
2010; Market-Research, 2013; Wiwutwanichkul, 2006). Nevertheless,
comprehensive research on this issue is limited, and there is insufficient literature on
consumer purchase behaviour in the context of natural cosmetics market or industry.
Table 1.1
Market Shares of Thai Cosmetics by Subsector
2008
US$ (mil.)
2009
US$ (mil.)
2010
US$ (mil.)
Growth
(Over
2009)
%
Share
(2010)
%
Hair Care 362 328 351 7 30.00
Make up 350 328 351 7 30.00
Skin Care 409 404 432 7 37.00
Perfume 47 33 35 6 3.00
Total 1,168 1,093 1,169 7 100.00
Source: Adapted from Industrial Estimate. US$1 = THB30 (2010)
The cosmetic products sold in the country are divided into three groups. First,
products produced by vendors of cosmetics in the country through acquiring the
rights to use the trademarks of foreign companies. This represents 70 percent of
cosmetics that is sold in the country. Second, products produced by vendors of
cosmetics manufactured in a foreign country, or imported directly from abroad,
which represents 20 percent of the total products sold in the country. Finally, the
group of products produced in the country and under Thai brands. Most of this type
6
of cosmetics uses natural extracts and is represents 10 percent of the total products
sold (Positioning-Magazine, 2010).
However, in 2009, Thailand faced an economic downturn and a situation of
political crisis (BangkokBank, 2009), which gave a negative impact on consumption
levels of the people. Nevertheless, the cosmetics industry was not affected badly and
enjoyed continual growth, as seen from the overall business growth every year. By
the year 2010, the growth period in this industry became noticeable, with a growth
rate of 25 percent (Thansethakit Newspaper, 2011). The growth trend in Thailand's
cosmetics market is between 10 percent and 20 percent each year (Wongsamuth,
2011). In 2011 alone, Thailand‘s high end or luxury cosmetics market was worth
US$3.50 billion, with US$1.52 billion coming from the domestic market and
contributed by imported products, while US$1.98 billion were earnings from export
to Japan, Indonesia, Malaysia, and the Philippines. About half of the products traded
are cleansing and hair products, 30 percent facial preparations, and 20 percent
products for makeup (Wongsamuth, 2011). Table 1.2 shows that the overall growth
for imported market in year 2012 was around 25.26 percent and the growth
continued into the third period (Jan-Oct) of 2013 around 33.90 percent. Meanwhile,
Table 1.3 shows that the growth of the export market in 2012 increased 9.54 percent,
compared with the third period of 2013, when the export growth decreased to -1.48
percent. Therefore, the evidence shows consumer‘s reliance on imported products in
the case of cosmetics, in contrast to that of local product that has received less
attention among the potential consumers in the region.
The Department of Export Promotion, Ministry of Commerce of Thailand
(2010) reported that imported cosmetic products accounted for approximately 20
7
percent of the total market, and these products are mostly imported from France,
Germany, United Kingdom, Italy, China, and the United Stated, the leaders of
imported cosmetics in Thailand. The Kasikorn Research Centre (2010) reported that
the market value of imported cosmetics could likely be more than US$ 5.15 million,
increasing about 15 percent from year to year, and accounting for 50 percent of Thai
cosmetics market value. In addition, many brands of natural cosmetics have been
launched in the Thai market such as Jurlique, Origin, Yves Rocher, Juice Beauty and
L‘Occitance, Garnier Bio Active, Nude, Aubrey Organics, Johnson's Natural, Yes To
Carrots, Skin Food, Natural, and many more.
Recently, cosmetic products under Thai brands have become recognized as a
global cosmetic product (Aowpatanakul, 2013; Kasikorn Research Center, 2010).
Cosmetics using mixed Thai medicinal plants such as Panpuri, Thann, Harnn, Prann,
Erb, and Oriental Princess are more popular in overseas markets and recognized in
Europe, Japan and increasingly in North America (Aowpatanakul, 2013). Thailand‘s
primary exports in cosmetics and spa products sectors are soap, facial and skin care
products, and raw materials for cosmetics (Department of Export Promotion Ministry
of commerce, 2010; Udomrat, 2013). In spite of the increasing demand for natural
cosmetic products among Thai consumers, little is known about the significant factor
affecting the consumer towards a particular product.
8
Table 1.2
Imported Values (Million THB) of Thai Cosmetics Products: Classified by Countries 2010-2013(Jan-Oct)
Source: Adapted from Information Technology and Communication Centre: Office of Permanent Secretary Ministry of Commerce: The
Cooperation of the Department of Customs, 2012
9
Table 1.3
Exported Values (Million THB) of Thai Cosmetics, Beauty Products and Soap: Classified by Countries 2010-2013 (Jan-Oct)
Source: Adapted from Information Technology and Communication Centre: Office of Permanent Secretary Ministry of Commerce: The
Cooperation of the Department of Customs, 2012
10
1.4 The Dynamics of Luxury Natural in Cosmetics Industry
Luxury consumption is an exclusive consumption (Vigneron & Johnson, 2004).
In the past decade, consumers purchased luxury products more for satisfying their
socio-psychological needs rather than for functional utility (Shukla, Shukla, &
Sharma, 2009). However, buying to make an impression in social class have become
less important (Yeoman, 2010). Since the financial crisis that occurred a few years
ago, consumers have re-examined their priorities and as consequence, attitudes and
behaviours towards luxury have changed. To explain the changes, consumers have
gained easy access to many luxury products and they have become more socially
aware in the related mass market (Doval, Singh, & Batra, 2013; Janssen, Vanhamme,
Lindgreen, & Lefebvre, 2014; Yeoman, 2010). Furthermore, luxury is becoming more
closely aligned with deeper issues such as eco-awareness, healthy living, and ethical
lifestyles (Bendell & Kleanthous, 2007; Kendal, 2010; Yeoman, 2010). In particular,
current luxury consumers look beyond their pocketbooks to larger issues, such as
protecting the environment, global warming, and so forth. In parallel with that, luxury
businesses attempt to connect with their consumers who are increasingly eco-concern
and green-aware to reach their target by making environmental issues as part of their
strategy (Danziger, 2008). For instance, several environmental practices have been
implemented within luxury market such as women dress in an eco-friendly and
animal-free Stella McCartney power suit with satin pumps, eco-friendly designer
home furnishing and jewellery made from recycled metals natural skin care products
(Danziger, 2008; Nagasawa & Kizu, 2013), and more significantly introducing natural
cosmetic (Girotto, 2013).
11
In context of cosmetic products, growing consumer‘s awareness about the
hazards in synthetic chemicals, healthy safety, environmental consciousness have
fuelled the demand for natural cosmetic products. Consumers are more concerned
about the risk from the product that they use and they are also concerned about
environmental issues on their purchasing behaviour (Łopaciuk & Łoboda, 2013). The
issues can be critical signal for business to recognize that now myriad of consumers,
before decision-making, seeks to businesses which have environmental practices.
Therefore, understanding consumer behaviour in specific consumption as luxury
natural products is very important for the business (Kim & Chung, 2011). Since
consumer behaviour and market trend have changed, different factors might be
involved and a different marketing approach might be required.
Natural cosmetics seem to have a great future. Surprisingly, global sales of
natural and organic personal care products have reached about US$9 billion in 2011,
and consumer demand for natural products has still remained buoyant (Kline Group
Company, 2012). Organic Monitor predicted that the revenues of global market for
natural and organic personal care products will climb up to US$14 billion in 2015
(OrganicWellness, 2012). Meanwhile, TechNavio reported that skin care market
which is expected to reach US$90 billion in year 2014, fuelled by consumer affluence
and demand for organic and natural products (Reportlinker, 2013). The significant
growth of the natural cosmetics market, specifically in Asian countries, which has
been reported about 13 percent, is higher than that of the US and European markets
(Kline Group Company, 2012). The international market for natural cosmetics has
skyrocketed over the past few years and will grow further.
12
Despite the economic crisis, the natural cosmetic products have been able to
maintain a good level of growth (Kline Group Company, 2012). The evidence is
shown in the growth achieved in the year 2009, which amounted to 13 percent in Asia,
nine percent in Europe and eight percent in the US. Asia is the biggest market ahead of
Europe and the US for natural and organic cosmetic products (Kline Group Company,
2012). The international market research, Kline Group Company (2012) forecasted
that there are excellent prospects for natural cosmetics in Asia, Europe, and the US
until the next five years. In particular, there are several developing counties in Asian
region, such as Thailand, which have attracted many luxury natural cosmetics
businesses. Thailand has been recognised as having rapidly growing cosmetics
industry (Sukato & Elsey, 2009). More specifically, natural cosmetics sector has also
been experiencing significant growth in Thailand (Aowpatanakul, 2013; Petcu, 2013).
Furthermore, according to the Ledbury research, amongst Southeast Asian
countries, Thailand is an emerging market and is considered as number one hot-spot
for the luxury products. The country has a gross domestic product of nearly US$346
billion, the largest in Southeast Asia after Indonesia, with an unemployment rate of
less than one percent, having luxury consumers among emerging markets, and
particularly, Thailand‘s demand comes from the large number of upper middle class
(Petcu, 2013). Consequently, the luxury market has a potential for fast and continuous
growth (Petcu, 2013). Thailand‘s capital, Bangkok, became the most popular address
for many luxury brands to open their flagship store (Chadha & Husband, 2006). A
myriad of international luxury brands are locating their operations in Bangkok. As a
result, the number of luxury stores in the country is growing by 17.6 percent,
compared with an average of eight percent growth globally (Lesbury-research, 2012).
13
As aforementioned, natural cosmetics products have captured attention in the
luxury market (Nagasawa & Kizu, 2013; White, 2012). The American Consulate
General (2011) reported that recently, the luxury natural skin care products have
achieved the highest market share of all cosmetics product categories. The luxury
cosmetics sector is also rapidly growing in business despite the sluggish world
economy. The appeal of luxury products can penetrate both the domestic and the
international markets, further increasing their attractiveness to consumers and
suppliers (Christodoulides et al., 2009; Karpova, Nelson-Hodges, & Tullar, 2007).
Thai natural cosmetics industry has contributed significant growth in the last
decade. Due to the change in consumer lifestyle, with consumers becoming more
concerned about their health and their external environment, the demand for the
products from natural ingredients and concerned about environmental issues are
increasing. Therefore, many businesses have accessed the market by offering well-
suited products to fulfil consumer‘s need. The market has now offered local brands
and international brands, from low priced to high priced, and luxury priced products
(Aowpatanakul, 2013). The growth rates mentioned covered all the markets including
low, medium and the high-end and luxury market (Łopaciuk & Łoboda, 2013). The
high-end and luxury markets are led by international brands, produced in Thailand as
well as imported from overseas, and have shown the significant growth yearly (see
details in Table 1.2).
According to a survey by The Nielsen Company (2007), 30 percent of
consumers Worldwide spend more on beauty products and treatments today than
before. With growing concerns about health and the environment, many consumers
today are seriously interested in what they put on their bodies (Girotto, 2013). They try
14
to control their health by looking for healthy skin care and cosmetics products. This is
because people believe that natural ingredients make better and healthier beauty
products. Therefore, the use of the term ―natural‖ on the label is becoming a key sales-
driving force (Decision News Media, 2004). The international market research, Kline
Group Company (2012), showed that the personal care (skin care and hair care) sector
accounted for the largest portion of sales in the world of cosmetics industries and it is
expected that the global market for natural personal care products will maintain strong
growth with a compound annual growth rate of almost 10 percent through 2016.
Natural cosmetics market is growing steadily. Thus, many cosmetics businesses
have entered into the market. Natural cosmetics products have become more visible in
the global market. In fact, the market has evolved from a niche that was previously
taken by few businesses has now moved into the mainstream market (Lenard, 2011).
Consequently, businesses face fierce competition in the related markets. Therefore, it
is highly important for businesses in this sector to retain their consumers for the longer
term. Indeed, the concept of repurchase intention is introduced as an indicator of
successful business at the actual purchase level, and loyalty to the business for future
purchases. Thus, it would be interesting to investigate potential predicting factors in
respect of repurchase intention in the particular context.
In summary, the aforementioned discussions have led this study to attempt to
investigate important factors that influence consumers to have repurchase intention
luxury natural cosmetics products. In addition, this study will be conducted in the
context of Southeast Asian countries where the awareness towards natural cosmetics
products are increasing, while concurrently, the buying power for luxury product are
increasing as well. Therefore, efforts to clearly understand consumer behaviour in the
15
Southeast Asian context might help the business practitioners and marketers to
develop effective marketing strategies to target their consumers.
1.5 Research Problems
Consumer preference for natural and organic cosmetic products continues to
grow around the world (Girotto, 2013), driven largely by better awareness of harmful
chemicals in cosmetics (Matthews, 2009). Interestingly, luxury natural skin care
products hold the highest market share of all cosmetic products (American Consulate
General, 2011), and this trend should continue as, according to Euro-monitor (2011),
the future of the luxury goods market will be shaped by ―being natural‖. Based on
prior studies, decision making in luxury purchasing differs noticeably from
commodity style purchasing (Vigneron & Johnson, 2004). Therefore, it is still
doubtful whether prior literature on natural consumption and luxury consumption
would be applicable in the context of luxury natural product consumption. In addition,
there is limited evidence showing whether consumers have the same motivation
factors when purchasing luxury natural products compared with purchasing only
natural or only luxury products.
Luxury natural products tend to be perceived as unique products, and hence need
more product-oriented specific studies. The concept of luxury and the concept of
natural are contrary in perspectives. The relation between consumers of luxury
products and environment are commonly not concerned, while this relation has been
more developed in the terms of consumers of natural products. Therefore, it is crucial
to determine whether luxury and environmental concern are relevant to natural product
consumers. This was attempted in several prior studies of green products (Lin &
Huang, 2012), organic products (Rajagopal, 2007), natural products (Kim & Seock,
16
2009), eco-friendly products (Cheah & Phau, 2011), and luxury consumption in
particular (Rouhani & Hanzaee, 2012; Shukla, 2011; Wu & Liang, 2009). These
studies focused on individual product categories, and studies that have integrated the
concepts of natural and luxury product together are limited. Filling these knowledge
gab required exploration of the key factors which influencing consumer‘s purchasing
behaviour of luxury natural products, i.e. luxury factors, natural factors or a mix of
both. Identifying any new groups of the factors that could affect purchasing behaviour
of luxury natural products might convey new perspectives for this product category.
Most prior studies have addressed the issue of consumer behaviour outcomes,
that is, loyalty and repurchase intentions (Byun & Finnie, 2011; Eggert & Ulaga,
2002; Hellier, Geursen, Carr, & Rickard, 2003), by assuming consumers who
repeatedly purchase the products generally rely on post purchase satisfaction.
Repurchase intention is well-known as consumers‘ commitment to make future
purchases (Hume, Mort, & Winzar, 2007) based on past satisfaction (Stern &
Hammond, 2004), an indicator of the success of a company‘s product and a predictor
of the actual purchase level (Chandon, Morwitz, & Reinartz, 2005; Curasi & Kennedy,
2002; Stern & Hammond, 2004). However, Reichheld, Markey Jr, and Hopton (2000)
stated that in their study 60 percent to 80 percent of consumers who were satisfied
with their previous purchase will leave the business. This problem is further
aggravated by a wider choice of alternative products. Therefore, consumers‘ intention
to repurchase might not rely on customer loyalty or post purchase satisfaction, as was
suggested by Bolton and Drew (1991), which noted that customer satisfaction is
necessary for, but not a guarantee of, consumer future purchases. Given rapid changes
and the plethora of new products available, influencing future purchase intentions
might not be the same set of factors found in past studies. Therefore, this study does
17
not address the issue of repurchasing behaviour. However, the researcher examined the
impact of predictors on purchasing behaviour.
Few studies have investigated the major factors influencing consumer
repurchase intention for natural and luxury products. Some studies have been
conducted on consumer repurchase intention in the context of natural or eco-friendly
products or services (Han, Hsu, & Lee, 2009; Hur, Kim, & Park, 2012; Jin-Soo, Li-
Tzang, Heesup, & Yunhi, 2010), or luxury products or services (Lobo, 2008; Patrick,
MacInnis, & Folkes, 2002). Nevertheless, few studies have incorporated natural and
luxury concepts as a construct of perceived value or considered how these two
concepts affect the level of consumer intention to repurchase, especially in the context
of luxury natural cosmetics. Consequently, little is known about how to optimize the
market and manage consumer expectations with regard to the special consumption of
luxury natural products. Therefore, the aforementioned limitation illustrates the
necessity to conduct an investigation of the crucial factors affecting consumer
repurchase intention of luxury natural cosmetic products. Furthermore, it would be
useful for researchers and marketers to formulate marketing strategies if they have a
framework integrating two values which are based on personal values and perceived
value (Vinson, Scott, & Lamont, 1977).
Some previous studies of luxury consumption considered perceived value only
as external factor, but perceived value might not be enough to grasp the overall picture
of consumer behaviour clearly. Another approach is to view consumer behaviour from
different lenses by considering other factors such as internal factors, and mechanisms.
Indeed, this research intends to fill the gap as it comprises three major and critical
factors as the building blocks of consumer behaviour. First, personal values is an
18
internal factor conceived of a criterion affecting choices, based on individuals, ideas,
and objects which posit the association between values and behaviour (Vinson et al.,
1977). Second, perceived value as an external factor, is conceived as an initial concern
based on consumers‘ needs, expectations and relevance to marketing. Third, customer
orientation of salespeople as a mechanism factor is considered a crucial factor to
maintain successful relationships between consumers and businesses (Hennig-Thurau
& Thurau, 2003; Mallalieu, 2006; Palmatier, Scheer, & Steenkamp, 2007).
Personal values are the primary component of an individual‘s belief system
(Vaske & Donnelly, 1999). The role of personal values is as a standard or criterion
influencing evaluations or choices of persons, objects, ideas, and is the basis of
consumer behaviour (Vinson et al., 1977). Personal values are crucial to understanding
environment-related behaviours (Thogersen & Grunert-Beckmann, 1997), and in the
context of luxury products, personal values are key factors in consumer purchase
behaviour (Shukhla, 2012). These concepts have been dealt with in existing research
(Shukla, 2012), in the context of natural beauty products, environmentally friendly
beauty products (Kim & Seock, 2009), and luxury consumption (Shukla, 2012), but
this study expects that consumers with different personal values will show different
behaviours towards luxury natural products. Hence, there is a need for more
investigation of personal values as one of the indicators that could assess consumers‘
repurchases intention.
The second building block of consumer behaviour, perceived value, has been
established as a crucial factor in consumer purchase behaviour (Sweeney, Soutar, &
Johnson, 1997). According to their school of thought, consumers are initially
concerned with perceived value, which influences consumer decision-making
19
behaviour. Manufacturers of natural products study raised that the role of consumer
perceived value of natural products are importance to long-term business success
(Hughner, McDonagh, Prothero, Shultz II, & Stanton, 2007). Furthermore, previous
studies showed that in a highly competitive market, consumers consider perceived
value more than satisfaction or loyalty for future purchases. These studies suggested
future research focus more on perceived value as the main factor affecting consumer
behavioural intention for natural products (Shaharudin, Pani, Mansor, & Elias, 2010b)
and luxury products (Shukla, 2012). This situation calls for more empirical research to
identify the role of perceived value on consumers‘ purchasing behaviour.
The effect of perceived value on consumer purchase intentions has been
examined in the context of luxury products through luxury value models (Shukla,
2011; Tynan, McKechnie, & Chhuon, 2010; Vigneron & Johnson, 2004; Wiedmann,
Hennigs, & Siebels, 2007). Luxury models have considered psychological and
functional needs by proposing multidimensional constructs of perceived value
(Vigneron & Johnson, 2004), but have attempted to validate the measurement items
(Tynan, McKechnie, & Chhuon, 2010; Vigneron & Johnson, 2004; Wiedmann,
Hennigs, & Siebels, 2007, 2009) rather than to examine the luxury value model on
consumer behaviour of specific products. As luxury natural products are considered a
unique product, the current study proposes that consumers might differ in their value
perceptions, which suggests that models based on different products might not be
generalizable to other product categories. Thus, to fill the gap, this study tested the
impact of perceived value, including financial, functional, and social dimensions, on
repurchase intention in the context of luxury natural cosmetics products.
20
The third factor that may play an important role in consumer purchasing
behaviour of luxury natural products is the salespeople, which is mechanism factor.
Salespeople play a critical role in developing and maintaining a successful relationship
between consumers and retailers (Hennig-Thurau & Thurau, 2003), which has been
confirmed by previous studies (Mallalieu, 2006; Palmatier et al., 2007). This
relationship becomes even more important in cosmetics products as they require a lot
of personal service to offer the products (Chiou & Droge, 2006), especially luxury
cosmetic products (Jarurungsipong & Rakthum, 2012; Jin & Hong, 2004). Cosmetics
consumers tend to rely on the information provided by salespeople because
advertisement information does not thoroughly explain how to use the products. This
becomes even more important with specialist products, like natural cosmetics, as
consumers still lack product information (Dimitrova et al., 2009). Here, the
salespeople also play an important role in educating consumers on the product
benefits. While some research has revealed insights on the impact of the salespeople in
natural cosmetics or luxury cosmetics, but there is a paucity of research on the effect
of the salespeople on customer behaviour in the context of luxury natural products.
The role of salespeople has been commonly distinguished as an antecedent of
purchase intention (Preis, 2003; Valenzuela, Mulki, & Jaramillo, 2010). However,
most of the previous studies determined the direct relationship between salespeople as
an independent variable and a dependent variable, while few studies considered
salespeople as a third variable that moderates the relationship between the independent
variable and the dependent variable. Nevertheless, the moderating role of salespeople
on the relationship between perceived value and consumer behavioural intention
should not be ignored (Wang, 2009). In fact, Fishbein and Ajzen (2005) expressed that
human behaviour is multifaceted and thereby it is hard to predict behaviour. Skinner
21
(2005) concluded human behaviour to be a process rather than a subject, and not able
to be observed explicitly. Therefore, the association between predictor and criterion
variables is commonly complex and not straightforward (Fairchild & MacKinnon,
2009). However, thorough research could truly capture the dynamic interplay of
salespeople, particularly in the context of luxury natural consumption. Hence, it is
appropriate to conduct research to examine the role of salespeople as a moderator
variable.
In summary, understanding the relationship between perceived value, personal
values, and salespeople is important to understand consumers purchasing behaviour of
luxury natural cosmetic products. Therefore, this study attempts to investigate the role
of perceived value and personal values as the independent variables of repurchase
intention. In doing so, the study extends the luxury model by integrating the role of
customer orientation of salespeople into the context of luxury natural cosmetic
products. The overall model which guides the current study is illustrated in Figure 1.1.
Figure 1.1 Overall Model Guiding Current Study
22
1.6 Research Questions
The problems discussed in the earlier section have raised several important
queries worthy of closer examination. The research questions are as follows:
RQ1: What is the relationship between perceived value and repurchase
intention?
RQ2: What is the relationship between personal values and repurchase
intention?
RQ3: Does customer orientation of salespeople (COSP) moderate the
relationship between perceived value (i.e., financial value, functional
value, and social value) and repurchase intention?
1.7 Research Objectives
Based on the list of research questions in the previous section, this study intends
to achieve the following objectives:
RO1: To investigate the relationship between perceived value and repurchase
intention in the context of luxury natural products consumption.
RO2: To investigate the relationship between personal values and repurchase
intention in the context of luxury natural products consumption.
RO3: To examine moderating effects of customer orientation of salespeople
(COSP) on the relationship between perceived value (i.e., financial
value, functional value, and social value) and repurchase intention in
the context of luxury natural products consumption.
23
1.8 Definition of Key Terms
The definition of variables used in the study is described as follows.
(a) Repurchase intention
Repurchase intention is defined as the probability of an individual to buy a
product or service from the same company again in the future (Hellier et al., 2003;
Jones, Mothersbaugh, & Beatty, 2000).
(b) Perceived value
Perceived value refers to ―Customer‘s perceived preference for an evaluation of
those products attributes, attribute performances, and consequences arising from use
that facilitate (or block) achieving the customer‘s goals and purposes in use situations‖
(Woodruff, 1997).
(c) Financial value
Financial value addresses direct monetary aspects and refers to the value of the
product expressed in dollars, cents, or yen and to what is given up or sacrificed to
obtain a product (Ahtola, 1984; Monroe & Krishnan, 1985).
(d) Functional value
Functional value represents the perceived utility of an alternative resulting from
its inherent attributes or characteristic-based ability to perform its functional,
utilitarian or physical purposes (Sheth, Newman, & Gross, 1991).
(e) Products safety
Product safety refers to ‗‗any product which, under normal or reasonably
foreseeable conditions of use including duration and, where applicable, putting into
service, installation and maintenance requirements, does not present any risk or only
the minimum risk compatible with the product‘s use...‖ (GPSD, 2001). Safety of
24
cosmetic product: Directive 93/35/EEC clearly states that the safety of a cosmetic
product must be assessed by taking into consideration the general toxicological profile
of the ingredients, their chemical structure and their level of exposure (European-
Union, 1993).
(e) Quality
Quality is defined as a consumer‘s perception of the overall excellence of the
product based on intrinsic (e.g., performance, durability) and extrinsic cues (e.g.,
brand name, warranty), (modified fromKirmani & Baumgartner, 2000).
(f) Usability
Usability is defined as the extent to which a product or service can be used by
specified users to achieve specified goals with effective, efficiency and satisfaction in
specified context of use (ISO, 1998).
(g) Social value
Social value represents the perceived utility of an alternative, resulting from its
image and symbolism in association, or disassociation, with demographic,
socioeconomic and cultural-ethnic reference groups (Sheth et al., 1991).
(h) Conspicuous consumption
Conspicuous consumption can be defined as the tendency for individuals to
enhance their image, through overt consumption of possessions, which communicates
status to others (O'Cass & McEwen, 2004).
(i) Prestige
The definition of prestige might vary with different people, depending on their
socioeconomic background. In marketing context, consumer develop prestige meaning
for brands based upon interactions with people (e.g., aspired and peer reference